The Dollar Index (DXY) to resume its depreciation into a lower 95-100 range through 2025 on the Fed’s rate-cutting cycle, DBS’s FX analyst Philip Wee notes.

USD to go down in the following year

“We have lowered our forecasts for the USD and US interest rates.”

“Barring shocks to the global economy and financial markets, we see DXY resuming its depreciation into a lower 95-100 range through 2025 on the Fed’s rate-cutting cycle.”

“This follows over 20 months of consolidation in a 100-107 range under the Fed’s ‘high for longer’ rates stance.”